CERTYNEX IFRS ACADEMY

Aster is a limited-life company with a term of twenty years. Its units oblige Aster to deliver to the holder a pro rata share of its net assets only on liquidation, at the end of the twenty years (case facts). Case assumption: the conditions of the exception provided for this type of instrument are met. How does Aster classify these units?

As a financial liability, because the obligation to deliver a pro rata share of net assets on liquidation is an obligation to deliver a financial asset at maturity, even if the triggering event is liquidation.

As a financial liability, because the liquidation date is known in advance and makes the obligation certain for Aster, whatever the nature of the instrument.

As equity, by exception, because the obligation to deliver a pro rata share of net assets arises only on liquidation and the conditions of the exception are met.

As equity, without examining the conditions of the exception, since any obligation arising on liquidation is excluded from the definition of a liability.